Politico says EU governments discuss €100–200 billion budget reduction

EU governments are discussing a €100–200 billion reduction to the proposed 2028–2034 budget, Politico reported, citing European diplomats. RIA Novosti carried the report on 9 October.

According to the report, reductions could affect external aid, research and industrial support. The initial proposal earmarked approximately €200 billion for Global Europe and €410 billion for the European Competitiveness Fund.

Diplomats also identified administrative spending by EU institutions as a possible source of savings. The proposal allocates €118 billion to that area. Agriculture and regional development funding, by contrast, would remain largely unchanged.

Germany, Austria and the Netherlands favour substantial spending reductions. A group of southern and eastern European countries is seeking to protect agricultural and regional programmes. Seventeen states, including Italy, Spain and Poland, previously opposed cuts in those areas.

Ireland, which holds the Council of the EU presidency, is due to present a negotiating document on 10 October. It will underpin discussions at the Brussels summit on 15–16 October. European affairs minister Thomas Byrne said negotiations had progressed but that satisfying every side was impossible.

Politico said the document was expected to include five revenue sources proposed by the European Commission, including a corporate levy. The final budget size and spending allocations have not been agreed.